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Walgreen Co. and Kerr Drug, a privately held regional pharmacy chain in North Carolina, have entered into a definitive agreement under which Walgreens would acquire certain assets of Kerr Drug's retail drugstores and specialty pharmacy business. Financial terms of the agreement were not disclosed at press time. In fiscal year 2012, Kerr Drug's retail drugstores and specialty pharmacy business recorded total sales of $381 million.

The acquisition advances Walgreens strategy to deliver the "Well Experience" for customers by expanding Walgreens presence in North Carolina, a fast-growing market, including into many smaller communities, said the company.

"The Kerr Drug retail drugstores and specialty pharmacy business are an exceptional addition to the Walgreens family of companies," said Walgreens President and CEO Greg Wasson. "We are closely aligned on the important task of expanding the health care role that community pharmacists can have with their patients, and we share the common goal of stepping out of the traditional drugstore format to create a new experience for our customers."

The acquisition is structured as an asset transaction and includes Kerr Drug's 76 retail drugstores and its specialty pharmacy business. It also includes a distribution center. Kerr Drug will retain ownership of its long-term care pharmacy business.

Until the acquisition closes, Kerr Drug and Walgreens will continue to operate separately. After closing, the acquired Kerr Drug retail drugstores will continue to operate under their current brand in the near term. The transaction is subject to satisfaction of regulatory requirements and other conditions, and is expected to close sometime this year. Walgreens anticipates the transaction will not have a material impact on earnings per share in fiscal year 2014.